Situación actual

The next phase of the planning process is to develop the actual marketing strategy for the port." This involves the development of the marketing mix based on the objectives, and markets targeted. The final marketing plan must also consist of:

a) targets and projections (in terms of TEU or tonnage) by traffic types

b) a budget of both financial and human resources to be expended in the marketing effort, and

c) a statement allocating the marketing actlvitlBB among the various elements of the mix.

As can be seen, this represent the actual plan formulation phase, which, as stated earlier, is the concern of chapter 7. In this section, the role of the marketing mix in addressing some of the concerns of ports will be explored. Earlier, these concerns were identified as (a) more efficient utilization of facilities and (b) improvement of customer and worker relations.

6.4,1 The role of the marketing mix in improving efficient port utilization

Inefficient usage of facilities may occur as a result of excess capacity or too high a level of usage, which results in congestion or alternating situations of peaks and troughs in usage. In the case of the existence of excess capacity the aim will be to attract new, and of course, profitable cargoes.

In the case of the latter, the need may be to increment capacity. Judicious manipulation of the marketing mix can delay or reduce the need for new investments or attract new traffic to the port.

The fact that port services cannot be produced and stored ahead of demand, and that ship arrivals are not always predictable and will often tend to bunch, means that port facilities will experience periods of under-utilization and congestion. Seasonal demand for port services may be smoothed by pursuing a pricing policy wherein lower rates are charged for usage during the off-peak periods. This should serve to shift or spread some of the demand and so reduce congestion and the need to increase capacity.

Alternatively, it may be possible to encourage a -Faster turnaround o-F vessels;

i) by calculating ship related charges based on time spent alongside. Increasingly, this is being used and is more e-F-Fective the shorter the time -Frame -For the charge. For example, charges based on hourly rates would be more e-F-Fective than a daily charge.

ii) higher tari-FFs may be levied on vessels lying alongside port facilities and not working cargo.

iii) higher rates may also be levied for vessels working slower than average -'

iv) incentives can also be given to encourage rapid despatch: For example, port Klang in Malaysia offers a reduction in wharfage charges for vessels of certain size which leave the port in under eight or six h o u r s . A n o t h e r basis which might be more fruitful from a port management point of view,

is to offer similar reductions to different categories of ships, but also based on the quantity of cargo worked per call, since the time spent alongside is also a function of the cargo volume to be handled. Another example, is the strategy used by Singapore and Kaoshung <Korea) wherein ships not leaving berth within say two hours after completing work, pay extra charges, which can amount to five times normal charges. All these represent effective methods of persuading more efficient usage of berthing space.

* ‘ Lecture August, 1991.

Similarly, more efficient usage of storage areas can be made by shortening the free periods and using an escalating rate for succeeding days above the free period.

Where situations of underutilization (not attributable to seasonal fluctuations) exist, the task is to use the marketing mix to attract new traffic. In this context it has already been shown how port marketing can serve to pinpoint new market opportunities. For a port pursuing new traffic, it is important that its tariffs be flexible in order to enable negotiations. Increasingly the trend is away from standard tariffs, in favour of individual contracts based op what the traffic will bear. This also means that there must exist proper knowledge of the carriers' revenue base.

6.4.2 The role of the marketing mix in improving customer and worker relations.

'Improving customer relations’ is a somewhat nebulous objective, but a practical one nonetheless. The port's success in maintaining or improving these relations will depend on its awareness of what is desired by the users, which is in turn a function of good market research. However, broadly speaking, the port can increase its ’popularity’ among its users by maintaining a high market profile and more importantly, by offering practical assistance when and where necessary, through:

Keeping in touch. It is through constant dialogue with customers that port management can isolate problems in both its operation and that of the customers, and can make corrections or suggestions/accommodations. Customers’ problems are often good sources of market opportunities.

- Providing -Facilitiss (where -Feasible) that are necessary to the customer’s operations, but which it might not be economical -For them to invest in. A good example o-F this is an electronic data processing service, especially with regards to vessel cargo planning and container tracking. These are now provided by many ports -For a nominal fee. Another example is the provision o-F storage space and processing zones -For manu-Factur i ng, along with computerized logistics system to e-F-Fect the accurate and timely distribution o-F cargo. It caters to the manu-Facturers need to reduce inventory and transport cost while still being able to respond to the market.

- Market surveys carried out by ports can serve to indicate possible sources o-F cargo. Such in-Formation is invaluable to carriers, and with the prior approval o-F the companies surveyed can be copied to shipping lines. ■

- The port's promotional e-F-Fort is also important. While the previous steps are well known by the recipients o-F the assistance, promotion through trade journals and trade fairs are useful in broadening the awareness among other sectors of the market. Increasingly, advertisements in trade journals are no longer limited to detailing port facilities and using catch phrases, but to explain how the port has solved a particular customer's problem - a testimonial form of advertising. Trade fairs are also invaluable sources of market contact, as well as well as advertising media, in order to

increase port awareness.

The level of staff motivation correlates with that of productivity. It is therefore necessary for the port's management to seek means of improving the motivation of

workers. Methods such as incentive schemes and profit sharing schemes are in place in most ports. However, a significant influence to staff motivation and morale, is to receive public acknowledgement for good performance. The port of Singapore has found an effective (if not novel) means of doing this. That is, through its fortnightly port magazine. Port View. Here pictures of staff who achieved high productivity (often bannered as 'performance above par') on a vessel, are shown along with details of the vessel, the performance level,

difficulties encountered and overcome during the task, and some group (eg. trophy) memento received for the performance. A port magazine can also serve to increase staff awareness and

interest in the port's performance, competitors and the industry as a whole.

Thus it can be seen that the scope of the marketing mix to achieve port objectives are many and varied and limited only by management's ingenuity. It also demonstrates the need for a designated group of people to be responsible for the planning and coordination (a marketing department) of all these activities, since they impinge on all the aspects of the port.